The Italian Ministry of Finance has issued today a press release, announcing that it has prepared the transitional measures that Italy would adopt in a “hard-Brexit” scenario to ensure continuity of markets and institutions in the financial sector.
The press release states that these measures will most likely take the form of a “decreto legge” issued by the Government (which the Parliament shall then convert into law within 60 days), but the date of its issuance is still to be determined, depending on the further steps that the UK will take in relation to Brexit.
As an official English version of the press release is not yet available, we provide the translation (click here), prepared by our lawyers. No other official document (including a text of these measures) has been released.
The press release confirms that, if the UK and the EU do not reach any deal ensuring the orderly withdrawal of the UK, Italy will introduce a reasonable transitional period, during which all types of financial institutions (banks, investment firms, insurance companies, etc.) may continue to carry out business under the current rules. This possibility will be given both to English institutions operating in Italy, as well as to Italian institutions operating in the UK.
The press release also states that the decreto legge will set out the obligations that institutions will have to comply with if they wish to continue carrying out business even beyond the transitional period. This is to ensure that a clear framework is established, enabling institutions to adapt to the regulatory and operational regime that will come into existence.
Finally, the press release confirms that similar measures will be provided in respect of trading venues and the access of participants thereto, and that investments of pension funds in collective investment schemes located in the UK may be held during the transitional period.